Discount Retailer Big Lots Announces Closure of 35 to 40 Stores Amid Tough Consumer Market

Discount retailer Big Lots has revealed plans to close 35 to 40 of its stores this year, attributing the decision to challenging economic conditions and decreased consumer spending.

The company cited “elevated inflation” as a key factor in the closures, making it the latest chain to consider bankruptcy amidst financial struggles.

Based on the financial filing, Big Lots, which operates 1,392 stores as of 2024, faced a 10.2% decline in sales between the first quarters of 2023 and 2024, amounting to a loss of approximately $114.5 million.

Big Lots currently has a significant presence in states like California and Texas, with California hosting 109 stores and Texas close behind with 116 locations.

In response to the tough consumer market, Big Lots is set to close stores across various states, including Fresno in California, where it has three locations.

Another retail chain that recently faced a similar fate is 99 Cents Only Stores, announcing the shutdown of all 371 of its stores earlier this year.

In an effort to adapt to changing market conditions, Dollar Tree Inc. acquired the leases and selected assets of 99 Cents Only Stores in a strategic move in June.

The increase in bankruptcies in 2024, as reported by S&P, highlights the ongoing economic challenges companies are grappling with, including high interest rates and supply chain disruptions.

Jerome Powell, the chair of the Federal Reserve, has been cautious about lowering rates despite some easing of inflation, underscoring the complexities businesses are navigating in the current economic landscape.